Muthoot Finance Share Price Falls 5% Despite Strong Q4FY25 Earnings

Market Performance

Muthoot Finance share price witnessed a sharp decline of 5.1% in intraday trade on May 15, closing at ₹2,139.20 on the BSE. This comes even after the company reported impressive earnings for Q4FY25.

• The stock remains over 12% below its 52-week high of ₹2,444.65 recorded in March 2025.
  
• Despite the recent dip, Muthoot Finance share price is still up 34% year-on-year.
  
• The stock has seen mixed performance in recent months:
  
  • +5.7% in January
  • -5.5% in February
  • +12% in March 2025
  • -9% in April
  • -1% so far in May

Robust Financial Results Fail to Boost Sentiment

Even with stellar financials, Muthoot Finance share price came under pressure amid weak broader market sentiment.

Q4FY25 Highlights:

• Consolidated Net Profit rose 22% YoY to ₹1,444 crore
• Standalone Net Profit jumped 41% YoY to ₹1,479 crore
• Consolidated AUM grew 37% YoY to ₹1.22 lakh crore
• Standalone AUM rose 41% YoY to ₹1.06 lakh crore
• Gold Loan AUM hit an all-time high of ₹1,02,956 crore (up 41%)

FY25 Performance:

• Consolidated Profit After Tax (PAT): ₹5,352 crore (up 20%)
• Standalone PAT: ₹5,201 crore (up 28%)
• Interest Income: ₹15,586 crore — the highest-ever recorded

Key Operational Metrics

• Average Gold Loan AUM per branch: ₹21.21 crore
• Gold loans disbursed: ₹21,888 crore to nearly 18 lakh new customers
• Total gold pledged: 208 tonnes
• Highest-ever Dividend: ₹26 per share (260% of face value ₹10)

Company and Subsidiary Update

While the core business saw outstanding growth, the group’s microfinance arm—Belstar Microfinance—reported weak performance:

• AUM fell by 20% YoY to ₹7,980 crore
• Net profit dropped to ₹46 crore from ₹340 crore

This decline was attributed to industry-wide asset quality concerns.

Summary

Despite delivering record-breaking financial results in Q4FY25 and for the full year, Muthoot Finance share price declined over 5% on May 15. Strong growth in its gold loan segment and a historic dividend payout were not enough to counteract market pressure.

The share price remains volatile, reflecting mixed short-term trends despite strong long-term fundamentals.